Huawei’s quarterly shipments expected to decline this year

In the first quarter of this year, Huawei surpassed Apple and achieved a clean number two in the top global smartphone makers but then recent US ban on Huawei caused its business with the US firms and is expected to affect its shipments this year.

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According to Fubon Research and Strategy Analytics, Huawei’s smartphone shipment could see a decline between 4 to 24% in 2019 if the US ban stays up, reported Reuters.

The US commerce depart has added Huawei into the trade blacklist, which prohibits the company from buying or selling any US-branded technology and services, which the company required to use in its new products or to sell them to its consumers.

Several experts said they expect Huawei’s shipments to slide over the next six months but declined to give a hard estimate due to uncertainties surrounding the ban.

The US tech giants are implying the ban rules and cutting ties with the Chinese telecom giant including Google that has already outcasted Huawei devices from its official Android outlets and currently providing software service to Huawei smartphone for the next 90 days.

This uncertainty about “Google’s Huawei ban” has been concerning consumers that what will happen after this temporary ban lift. Mobile carriers and local retailers in different countries have also cited the same issues and not purchasing any new stock from the company.

Other tech companies including, Intel, Qualcomm, Broadcom, Softbank group, ARM has also said they’ll not going to supply new chip components and software services to Huawei.

“Huawei may be wiped out of the Western European smartphone market next year if it loses access to Google,” said Linda Sui, director of wireless smartphone strategies at Strategy Analytics.

She predicts Huawei handset shipments will decline another 23% next year but believes the company could survive on the sheer size of the China market.

Fubon Research, previously forecast Huawei would sell 258 million smartphones in 2019, now expects that the company will ship just 200 million.

To get a grip on this situation Huawei said it has enough stack of technology for the upcoming time and developing its own chips and operating system to make its future devices but still everyone is looking forward to the US-China trade deal, which has dragged Huawei in the center.